Deeds: grant and quitclaim deeds, validity, delivery, and recording

What a deed does

A deed conveys an interest in real property from the grantor to the grantee. A purchase contract promises a transfer; the deed carries out the conveyance. A deed of trust serves a different purpose: it secures a debt.

Grant deed and quitclaim deed

In California, a grant deed ordinarily carries two implied covenants unless its terms limit them: the grantor has not previously conveyed the same estate to someone else, and the estate is free of encumbrances made, done, or suffered by the grantor or someone claiming under the grantor. These are limited promises, not a guarantee against every defect in the property's history.

A quitclaim deed transfers whatever present interest the grantor has, if any, without those implied title covenants. It can convey full ownership if the grantor owns it. It can also convey nothing if the grantor has no interest. It is often used to release a possible claim, but it does not establish that the claim existed or clear unrelated liens.

Valid execution and effective delivery

For an ordinary voluntary deed, look for a competent grantor, an identifiable grantee, operative words of conveyance, an adequate property description, and the grantor's signature or a properly authorized signature. The grantee ordinarily need not sign. A gift deed can be effective without payment. Acknowledgment before a notary generally prepares the instrument for recording; it does not itself transfer ownership or certify good title.

A signed deed must be delivered with intent to make the conveyance presently effective and accepted by the grantee. Merely placing it in a drawer does not complete the transfer. Delivery is about intent and control, not simply touching the paper. In escrow, release follows the applicable conditions and instructions. After a completed conveyance, destroying the paper does not return title to the grantor.

Recording and priority

Recording in the county where the property lies gives public notice when the instrument is properly recorded in the chain of title. An otherwise effective unrecorded deed can be valid between its parties, but California's race-notice rule can protect a later purchaser for value who takes without notice of the earlier interest and records first. Recording first alone is insufficient if that purchaser already had notice. Possession or other facts may require inquiry. Recording does not cure forgery or lack of effective delivery.

Keep disclosure duties separate from deed effectiveness. For example, California Civil Code section 1134 requires specified defect disclosures for the first sale of certain converted residential units; subsection (f) says failure to comply does not, by itself, invalidate the title transfer. Particular deed terms and transaction facts can change the result, so distinguish the basic rule from a title dispute requiring legal analysis.